Melius Research initiated coverage on Micron (NASDAQ: MU) on Monday, April 27, assigning it a ‘Buy’ rating and a price target of $700.
Analyst Ben Reitzes argued that the AI memory cycle may continue through the end of the decade, implying a firmly positive long-term outlook on the sector as a whole.
The new coverage coincides with a notable daily uptick, with MU shares rising 4.7% to $520 and pushing the memory-chip maker’s market capitalization past $587 billion.
Naturally, it is artificial intelligence (AI) that is driving the narrative. Namely, Micron has staged a powerful rally over the past year, with shares up more than 70% year-to-date, fueled primarily by its high-bandwidth memory (HBM) portfolio.
Unlike traditional DRAM, HBM stacks chips vertically, enabling significantly higher data throughput. For example, Micron’s HBM3E can deliver around 1.2 terabytes per second while consuming roughly 30% less power than the average industry solution.
Micron demand stronger than ever
Demand has also accelerated sharply after Nvidia (NASDAQ: NVDA) selected Micron as a key HBM supplier for its Blackwell GPU platform. As a result, all of Micron’s HBM output for 2026 is already locked in under long-term contracts.
Likewise, mass HBM4 production began ramping up significantly in April 2026. The new chips offer throughput exceeding 2.8 terabytes per second and deliver more than 20% better power efficiency compared to HBM3E.
Policy developments are adding another layer to the story, as Micron is actively pushing for tighter U.S. export controls on advanced chipmaking equipment bound for China, framing the issue around national security. This could help preserve Micron’s position, although tighter restrictions could imply reduced access to Chinese markets.
Micron gets a new Street-high price target
Reitzes’s latest price target is currently the highest Wall Street prediction on Micron, and it has pushed the average MU share price target for the next 12 months to $549.23. The figure implies a 5.45% upside based on 29 analyst notes compiled by TipRanks in the last three months.
With 26 ‘Buy,’ three ‘Hold,’ and zero ‘Sell’ recommendations over the same period, Micron is on average considered a ‘Strong Buy.’
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